Blizzard has canceled its highly-anticipated survival game, the company’s first new property since Overwatch in 2016, due to recent Microsoft layoffs. Microsoft laid off 1,900 employees, primarily impacting Activision Blizzard, which Microsoft acquired for $68.7 billion in October 2022.
The cuts also affected ZeniMax and Xbox divisions. Matt Booty, head of Xbox Studios, confirmed the cancellation, stating that affected team members would be redirected to other projects in early development at Blizzard.

The cancellation coincides with leadership changes at Blizzard, with President Mike Ybarra and Chief Design Officer Allen Adham leaving the company. The survival game’s cancellation disappoints fans eager for new content from Blizzard, known for core brands like Diablo, Warcraft, Overwatch, and StarCraft.

The industry’s ongoing evolution, marked by major acquisitions and organizational shifts, underscores the challenges and uncertainties developers face. The fallout from Microsoft’s layoffs and Blizzard’s decisions will have a lasting impact on both companies and the gaming community.
